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Emirates NBD Bank PJSC s aggressive retail lending has enabled the Dubai-based bank to eclipse larger rival First Abu Dhabi Bank PJSC in the retail banking segment, but the United Arab Emirates top bank by assets has the resources to claw back market share.
The two lenders, each majority-owned by the governments of their respective emirates, dominate the UAE s banking sector. Combined, they account for 50.93% of total UAE banking assets, according to S&P Global Market Intelligence data, which also shows that the pair are the second- and third-largest banks in the Middle East and Africa by assets. Emirates NBD has expanded consumer lending, increasing the size of its retail loan book 51% to 91.7 billion dirhams in 2020 from 60.9 billion dirhams in 2017, according to the data.
For anyone considering banking in the UAE, here’s all you need to know about them. Here you can find out how the industry came into existence decades earlier and it has been constantly evolving to cater to every financial need of UAE-based residents.
UAE’s banking industry before the Union
The UAE was born with a natural advantage of having an established banking sector. The history of banking in the GCC and Iran are closely linked to Imperial Bank, which is now part of HSBC.
In 1946, Frank Johnson opened Dubai’s first bank, the Imperial Bank, now part of HSBC. For the past 75 years, HSBC has played a significant role in the development of the UAE; from installing the first ATM in the UAE to supporting the construction of the Sarouj Falaji and to the dredging of Dubai Creek.
Dubai: Is it possible now to open a bank account in just four minutes flat? And that, too, without leaving your home? Quick answer: Yes. This greatly simplified process will be the “new normal”.
Picture this in your mind: a bank you never have to visit, queues you never have to wait in, and paperwork that’s no longer necessary. The world has changed, and people know it. This trend is accelerating.
Given the speed and convenience of social media, people now expect that same experience with their banks to transact in ways akin to a WhatsApp chat.
“The movement to, and now emphasis on, digital banking was already happening prior to the pandemic,” said Abdul Rahman Jaroudi, a UAE banker, told Gulf News.
Emaar chief, Mohamed Alabbar, to chair new UAE digital bank
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Zand aims to make banking quicker and simpler, via its digital offerings
by Zainab Mansoor
April 12, 2021
Mohamed Alabbar, founder of Emaar and e-commerce platform Noon.com, will chair Zand, the world’s first digital bank to provide both retail and corporate banking services.
The digital bank is set for an imminent launch in the UAE, subject to final regulatory approvals.
Zand aims to be a digital economic accelerator, providing the base for a broader generation of digital services, in addition to offering banking services.